When they took a loan, everything was fine, but life is so arranged that white stripes alternate with black ones in it. For any borrower, the day may come when there is nothing to pay on loans. There can be many reasons: loss of work, illness, addition to the family. In any case, the most real solution to the problem will not be an attempt to hide from the debtor, but a trip to the bank, with supporting documents and a request to restructure the loan. This will not completely solve the problem, but it will allow you to delay payments, reduce debt, and at the same time maintain the purity of your credit history by showing yourself to be a bona fide borrower. Bank employees can offer ten ways to restructure a loan.
1. Renew loan
In this case, the reduction of the financial burden on the borrower occurs due to a decrease in the amount of the monthly payment, but the term of payments is significantly increased. That is, the time to repay the debt is stretched, new dates for the restructuring of the loan are indicated in the appendix to the contract. Such an opportunity to simplify the calculation can be taken into account in bank documents, but not mentioned in the original contract. Basically, this method is used if the borrower had an unforeseen situation and he temporarily lost the opportunity to make the required monthly instalments. Good faith customers who have been discussed in this organization for a long time can get a chance for an extension. Before concluding an agreement, it is necessary to carefully study the proposed terms and soberly assess their material capabilities.
2. Go on vacation
So the bank called the grace period, which suggests different options for solving problems with debt payments. A conscientious borrower may go for a “credit vacation” for the first time faced with serious financial difficulties. A debtor who has already received a refusal to restructure may be refused in this form. The debtor receives a deferment for a period of several months to six months, and at this time he pays exclusively interest that runs onto the body of the loan or payments are generally “frozen” (for example, if the borrower is seriously ill). This type is more profitable, only payment terms are transferred here, interest does not increase and additional amounts are not accrued.
3. Change currency
The biggest trouble for the debtor are loans taken in foreign currency. The peak of calls for this type of restructuring comes after the fall in the value of national money. But experts recommend making such a statement on the eve of such an event when only the first prerequisites appear.if you want change currency through bank to use usaa routing number In this case, the customer’s benefit consists in lowering interest on the loan (rates on foreign currency loans are always lower than offers for money circulating in the country). However, this species is not the most popular because of fears of losing even more on the fall of the course.
4. Lower interest rate
Here the personality of the borrower plays an important role, or rather, the presence of a “crystal clear” credit history. The point is to recalculate interest, as a result of which each month you will need to pay less, which will help out if there are gaps in the family budget. Usually it’s possible to lower the rate by a couple of percent, but keep in mind that the reduction will not be for the whole loan, but for a certain period. And this does not mean that the amount of debt will decrease, on the contrary, later it will be necessary to overpay, giving the bank more than was expected at the conclusion of the contract.
5. Reduce monthly payment
In terms of meaning and effectiveness, this type is similar to the procedure for extending a loan; it is proposed to help repay a debt, allowing you to prevent regular payments. Moreover, in this case, credit hysteria does not deteriorate, but the bank nevertheless receives its funds and interest back. This is a temporary benefit for the client, allowing you to find the time to resolve financial troubles. But on the other hand, the final, deferred, amount of payments may become larger than initially, because the interest in this case remains the same.
6. Write off the penalty
The most difficult way in matters of debt restructuring is applied in case of debtor’s financial insolvency. If the amount of the debt is such that it makes no sense to get involved in a lawsuit, and even if the case is won, there will be nothing to take from the losing party, the cancellation of the penalty is applied. Interest and penalties may be cut off depending on the particular case, but it happens that the amount of the main loan decreases. If the client is not at all able to fulfil his financial obligations, he has the right to begin the process of declaring himself bankrupt.
7. Come up with a comprehensive program
In the individual case, after considering the application for payment problems submitted by the client, employees can offer a comprehensive solution to the problem by combining several types of loan restructuring. For example, applying the extension of the loan repayment period, changing the loan currency and cancelling penalties. However, this option is used extremely rarely.
8. Sign a new contract
Sometimes the bank and the client enter into a new agreement by applying a comprehensive program that allows the borrower to continue paying the debt on gentle terms with over-payment without). Moreover, the bank may act as an initiator and offer, instead of drawing up an amendment to the previous loan agreement, to sign a new one with different rules.
9. To remove fines
The elimination of fines that increase the loan that is already too heavy for the debtor is also considered one of the types of restructuring used. Typically, the amount runs in when you skip payments, the amount and mechanism are always indicated in the contract. Turning to the organization, the client has the right to ask for the cancellation of the imposed penalty amounts. Often this measure is part of a comprehensive program that is applied individually to each borrower.
10. Offer refinancing
If the client did not agree with the bank or none of the types of loan restructuring approached him, then you can try to achieve refinancing. In this case, there will be re-lending on more favorable terms for the borrower and the monthly volume of payments will decrease, and interest will also be lower. The main thing is that this will reduce the financial burden and accelerate the payment of debt.